Migao Corporation

Migao Corporation

January 19, 2011 07:08 ET

Migao Opens Joint Venture Fertilizer Plant With SQM

- Expansion in Shanghai to Follow -

TORONTO, ONTARIO--(Marketwire - Jan. 19, 2011) - Migao Corporation (TSX:MGO), a leading producer of specialty potash fertilizers for the Chinese market, and Sociedad Química y Minera de Chile S.A. (SQM) (NYSE:SQM)(Santiago Stock Exchange: SQM-B, SQM-A) of Santiago, Chile, the world's largest producer and distributor of potassium nitrate, are pleased to announce the start of production at the newly constructed potassium nitrate joint venture (JV) in Sichuan, China.

Migao and SQM jointly own the JV 50/50. The JV will distribute any exports of potassium nitrate produced by Migao or the JV, as well as any imports of SQM's potassium nitrate to China. In addition, the JV will distribute any exports of products produced by Migao.

"This comes at a time when fertilizer demand is outpacing supply in China. This is especially evident in the specialty potash-based markets we supply," said Mr. Liu Guocai, Migao's CEO. "This venture with SQM further reinforces our dominant position as China's largest potassium nitrate producer."

The new 40,000 tonne per year potassium nitrate production capacity from the JV is in addition to Migao's 80,000 tonne per year production at its wholly owned Sichuan Migao facility. 

Migao is also pleased to announce that construction of a 40,000 tonne per year potassium sulphate facility at the Company's wholly owned subsidiary, Shanghai Migao, is scheduled to be completed this quarter with production commencing in March. Including the joint venture with SQM and the new Shanghai facility, Migao's production capacity is 380,000 tonnes per year of combined potassium nitrate and potassium sulphate. Including specialty NPK facilities and other scheduled construction projects, Migao's capacity will be 570,000 tonnes by the end of calendar 2011.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) and specialty compound fertilizers to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Migao's Sichuan facility is ISO 14001 certified, an international environmental management standard. Please visit www.migaocorp.com for further information.

SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 100 countries. SQM's development strategy aims to maintain and strengthen the Company's world leadership in its three core businesses: Specialty Plant Nutrition, Iodine and Lithium. For further information, visit www.sqm.com


This news release may include forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and other provincial securities laws in Canada. These forward-looking statements include, among others, statements with respect to our objectives and goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", and "continue" (or the negative or grammatical variations thereof), and words and expressions of similar meaning, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results, performance or achievements may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on forward-looking statements as a number of important factors, many of which are beyond our control, could cause actual results, performance or achievements to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors that relate to our company include, but are not limited to: risks related to raw materials; execution of the business plan; expansion plans; dependence on key personnel; key relationships; dependence on key customers; dependence on key suppliers; competition; market factors and volatility of commodity prices; environmental risks and hazards; operating risks; proprietary rights; infrastructure; future capital requirements; technical substitution; exchange rate fluctuations; insurance; foreign operations; tobacco industry considerations; weather conditions and natural disasters; control by management; seasonality; dividends; conflicts of interest; global financial conditions; and the implementation of the Labour Contract Law in the People's Republic of China in 2008. In addition to the foregoing risk factors, there are also risks related to doing business in China which include, but are not limited to: state ownership; government sector intervention; foreign investment; repatriation of profit and currency conversion; tax; shareholders' rights and enforcement of judgements; developing legal system; protection of intellectual property rights; permits and business licenses; appropriation; and availability of land. Should one or more of these factors materialize, or should our estimates or underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those described in forward-looking statements.

We caution that the foregoing list of important factors that may affect our future results, performance or achievements is not exhaustive. When reviewing our forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found under the "Risk Factors" sections in our Annual Information Form and annual MD&A and elsewhere in our filings with Canadian securities regulatory authorities. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. We cannot assure readers that actual results, performance and achievements will be consistent with these forward-looking statements, and the differences may be material. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

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